Are HSBC benefit cuts unfair?

PaulinCottingham

I took out an HSBC Advance account about 10years ago. The main reason I chose this account was because it gave breakdown insurance, travel insurance and most importantly for me, a £3k death benefit. I had no other life assurance. A few years later, they invited me to top up my £3k benefit with an insurance plan which I did. The cost of this plan depended on my age - as all similar plans do.

They now inform me that they are removing the £3k death benefit from the account but I can contact them and pay for another plan like the one I already have. The problem with this is that as I am now 10 years older than I was when I started the Advance account, £3k worth of cover will be far more expensive.

If I stop paying the monthly payments for the plan, I receive no payout on my death nor am entitled to any refund. However, HSBC appear to be able to remove the death benefit - for which I've paid in account charges. Is this fair? I believe they should refund part or whole of the account charges.

PeacefulWaters

It's a reasonable point that you make. I'd be irritated.

The T&Cs that you agreed to always gave them the right to vary what's on offer subject to appropriate notice.

You can complain. HSBC will reject that. You can then escalate to the FOS. While I think they will reject it too, it costs you nothing to try.

I believe they should refund part or whole of the account charges.

They have accepted the risk up until now. I don't see this as a logical argument for you. A more sensible approach would be to focus on the different cost of replacement cover for somebody a decade younger.

But is £3k a deal breaker if you are paying for additional life cover?